The cost of drilling Saudi oil in 2003 was around $1.5/barrel ... approximately four times below the world average. (sorry... no figures for today)
The cost of extracting the oil out of Canada's oil sands is around $20/barrel (key variable: cost of natural gas, which is key ingredient in extraction process).
At $70 per barrel, it is no wonder corporations such as Exxon Mobil are setting record profits, Gulfies have no idea what to do with their money, and Iran is so damn cocky!!!
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4 comments:
The only meaningful and objective measure of profitability is an examination of the margins. By that measure integrated oil is not even close to the top.
integrated oil not even close to the top?
What exactly do you mean by integrated oil? oil sands and similar stuff?
and when you say "close to the top" do you mean profitability?
Raja, as hummbumm stated correctly integrated oil has lower margins than software and pharmaceuticals.
thanks for the clarification guys.
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